Question
The Cook Company has been depreciating equipment for 10 years with an estimated total useful life of 25 years. Cook has revised the estimated life
The Cook Company has been depreciating equipment for 10 years with an estimated total useful life of 25 years. Cook has revised the estimated life to be only 17 years, with 7 years remaining in the asset's useful life. What is the appropriate action that Cook should take now?
. | record a change in estimate by recomputing depreciation of prior periods and restating prior period financial results accordingly | ||
B. |
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C. |
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D. | depreciate the remaining book value over the remaining 7 years of the asset's useful life |
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